In other news, Broadridge targets SFDR, TMX buys WSH, and Skience focuses on Reg BI.
Asset Manager Moves to Single, Cloud-based System
Boutique asset manager Advisory Research Investment Management (ARI) reports that it has gone live with a software as a service (SaaS)/cloud solution that combines front-office trade order management with back-office portfolio accounting and reporting functions.
The implementation of the investment management system from vendor INDATA replaces an order management system (OMS) and a portfolio accounting system, according to the vendor.
The “central consideration” for ARI was moving to a single source for “front and back office workflows, accompanied by a responsive client service experience. The firm was also looking for a system that was cloud-based and customizable,” according to INDATA officials.
“Having a fully integrated system with a single source of data provides a number of efficiencies for us as well as a cost saving to the firm,” says the unnamed head of operations at the Chicago-based ARI in a prepared statement.
ARI offers “discretionary investment management services to institutional and high net worth clients through separately managed accounts, limited partnerships, open-end mutual funds, unregistered pooled investment vehicles, and model-based accounts. ARI primarily invests client funds in domestic equity securities (including common stocks of micro, small, mid, and large capitalization companies) and American Depository Receipts (ADRs),” officials say.
INDATA provides software, technology and outsourcing services to buy-side firms, including OMS, compliance, portfolio accounting and front-to-back office support via the iPM Epic investment technology platform, vendor officials say.
Broadridge Launches Managed Solution for SFDR Compliance
Securities operations systems and software provider Broadridge Financial Solutions has launched an end-to-end managed service solution that is intended to help European asset managers comply with the forthcoming Sustainable Finance Disclosure Regulation (SFDR), officials say.
The new environmental, social and governance (ESG) solution “comprising SFDR and the European ESG Template (EET) reporting requirements” is intended to help asset managers “efficiently provide data by leveraging automation and existing network links amongst fund distribution channels to ensure they have data and regulatory documents at the right time for their end clients,” according to Broadridge.
“Starting January 1, 2023, SFDR requires asset managers to consider and disclose in a consistent manner how ESG factors are adopted in their decision-making processes. For Articles 8 and 9 funds, this includes a Pre-contractual Disclosure (PCD), Periodic Disclosure (PD) and Website Disclosure (WD),” Broadridge officials explain.
“Additionally, starting June 30, 2023, asset managers will also be required to produce a Principal Adverse Impact (PAI) statement to determine the impact of their investment decisions on sustainability factors,” officials say.
The new managed service, offered via Broadridge Fund Communication Solutions platform, has been designed for asset managers “looking after EU-domiciled funds, and UK funds being marketed to EU investors,” officials say. The solution supports “all aspects of the composition, production, translation, and hosting of required disclosures under SFDR — including PCD, PD, WD and PAI — as well as maintenance and distribution of the European ESG templates.”
TMX Group Buys Wall Street Horizon
TMX Group Ltd., the parent company of the Toronto Stock Exchange (TSX), reports that it will be acquiring Boston-based Wall Street Horizon (WSH), a provider of global market-related action and corporate event data, and will make it a part of the TMX Datalinx offerings.
WSH offers “traders, portfolio managers, academics and others” forward-looking and historical corporate event datasets such as “earnings dates, dividend dates, options expiration dates, splits, spinoffs and a wide variety of investor-related conferences,” officials say. The company covers 9,000 public companies and offers more than 40 event types.
“The acquisition of Wall Street Horizon … is another important step forward for TMX Datalinx as we work to expand and enhance the content we provide to clients around the world,” says Jay Rajarathinam, chief operating officer (COO) for TMX Group, in a prepared statement.
The acquisition is expected to close during the fourth quart of this year and is subject to customary closing conditions, officials say. D.A. Davidson acted as exclusive financial and strategic advisor to WSH.
In addition to TSX, TMX Group operates TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corp., and Trayport which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products and other services to the global financial community, officials say. TMX Group is based in Toronto and operates offices across North America
Skience Targets Reg BI Compliance
Financial services solution and consulting provider Skience reports that it will be integrating a business intelligence system from CapitalROCK that Skience hopes will make compliance with Regulation Best Interest much easier for financial advisors.
Integration with the CapitalROCK platform, the RightBRIDGE Best Interest Validation System, “is another step Skience has taken toward allowing firms of all sizes to easily integrate Regulation Best Interest into their workflow process with a click of a button,” according to Skience officials.
RightBRIDGE uses “a scoring engine and ReasonText that explains why a recommendation fits a client’s needs and the licensing firm’s best interest requirements,” officials say. “As a result of the integration, this data can be used to update Skience records and be leveraged by Skience’s suitability checks as Skience’s client and household data will be prefilled into RightBRIDGE.”
“We are thrilled to add this powerful integration to our arsenal as part of our commitment to reinventing the way that advisors work,” says Sanjeev Kumar, co-founder and CEO for Skience, in a prepared statement. “We have greatly built up our compliance capabilities over the last few years and the RightBRIDGE integration will make it much easier for advisors to meet their Reg BI standards.”
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